A Theoretical Review on the Accounting Standards About Non-Depreciable Assets
10 Pages Posted: 13 Jun 2011 Last revised: 16 Jun 2011
Date Written: June 13, 2011
For over the years, accounting standards already become guidance in reporting the economic activities of an entity across the world. These standards developed by the standards setters based on the principles that have been already developed for many years, with one purpose, to regulate the accounting practices.
On the other hand, there are an inconsistency in the accounting standards, especially on the treatment about the depreciation of land with unlimited useful life and the amortisation of intangible asset with indefinite useful life, and also the classification of depreciable and non-depreciable assets.
The purpose of this study is to prove the misconception and the inconsistency in these standards. If it is proven and therefore the misconception and inconsistency has already been there for over the years, the final result of this study is to prove that accountants across the world are in the condition called as bounded rationality.
Keywords: IFRS, Theoretical Review, Depreciation Land, Amortisation, depreciation
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